Marks and Spencer (LSE:MKS) reported a solid Christmas trading period for the 13 weeks ended 27 December 2025, generating group sales of £4.99bn and maintaining momentum in its ongoing transformation strategy. Food was the clear standout, with underlying sales up 6.6%, like-for-like growth of 5.6% and UK volumes rising 2.3%. This performance lifted M&S to a record 4.0% share of the UK grocery market, reinforcing its status as the country’s fastest-growing family grocer.
Growth in Food was driven by strength across core grocery categories, continued focus on quality and innovation—particularly in ranges such as Italian ready meals and in-store bakery—and rapid uptake of value propositions including ‘Remarksable Value’ and ‘Bigger Pack, Better Value’. Newly opened and refurbished stores continued to outperform the broader estate, supporting market share gains.
In Fashion, Home & Beauty, sales declined 2.5% overall, as weaker in-store trading and earlier stock data issues outweighed improved online performance. Despite this, M&S regained fashion market share leadership and now ranks first for customer perceptions of style, quality and value, signalling progress in its brand repositioning. International sales rose modestly by 0.9%, with growth in wholesale, online and food franchises offsetting softer shipments and weaker performance in India. Ocado Retail delivered particularly strong growth, with sales up 13.7%, M&S-branded products increasing 16.3% and accounting for around 30% of Ocado Retail revenue, underlining the strategic importance of the joint venture.
Management reiterated unchanged full-year guidance and highlighted plans to accelerate the transformation agenda, focusing on value investment, product innovation, store and digital upgrades, supply chain efficiencies and structural cost reductions, despite ongoing pressures from fragile consumer confidence and milder seasonal weather.
From a market perspective, Marks and Spencer’s outlook is supported by strong financial performance and positive corporate developments. However, valuation remains demanding, with a high price-to-earnings ratio, while bearish technical indicators weigh on near-term sentiment. Management commentary reflected a mixed picture, with clear progress in several areas balanced against ongoing challenges, leaving valuation and technical risks as key considerations.
More about Marks and Spencer
Marks and Spencer Group PLC is a UK-based retailer focused on food, fashion, homewares and beauty, serving family-oriented consumers through a combination of physical stores, online channels and its Ocado Retail joint venture. The group is repositioning itself as a value-led, ‘shopping list’ grocer while pursuing store rotation and digital enhancement to strengthen market share and brand perception across clothing, home and beauty categories.
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